FRANKFURT (dpa-AFX) - The German stock market faced significant downward pressure on Monday following the tentative collapse of peace negotiations between the U.S. and Iran. Sentiment was further dampened by President Donald Trump's announcement of a naval blockade in the Strait of Hormuz.
The benchmark DAX index dropped 1 percent to 23,576 points. The MDAX, which tracks mid-cap German equities, shed 1.5 percent to 29,935 points. Meanwhile, the Eurozone's blue-chip EuroStoxx 50 index retreated by 1 percent.
Oil prices surged in response to the latest developments in the Middle East, reigniting concerns over inflation and the broader economic outlook. Overnight, the price of a barrel of North Sea Brent crude for June delivery climbed back above the 100-dollar mark. This spike had already dragged Asian markets into negative territory earlier in the session.
